Chapter 12 Investing in Stocks Characteristics of This Type of Investment Exhibit 12-3 Type of Stock Blue chip Cyclical offer A stock, issued by large, stable corporations with a history of pay-Cassfication of ng dividends, that generally attracts conservative investors A stock that follows the business cycle of advances and declines in When evaluating a nvestment, investors cher dlassily stocks into thee te categories. on stock the economy A stock that remains stable during declines in the economy. A stock issued by a corporation that has the potential of earning litors Growth profits above the average protits of al firms in the economy An investment that pays higher-than-average dividends. A stock issued by a corporation that has a large amount of capital Income Large cap ization in excess of $10 billion. Micro cap A stock issued by a company that has a capitalization of between $50 milion and $300 million or less. A stock issued by a corporation that has a capitalization of between Midcap $2 bilion and $10 billion. A stock that typically sells for less than $5 per share (or in some cases, less than $1 per share) and has a small amount of Small cap A stock issued by a company that has a capitalization of between $300 million and $2 bition. Today axist oorations have a website, and the information pecoe s especially useful. First, it is easily accessi- id you know? ay a re is ecod,thene to locate the corporation's home page. Saving the Planet One Investmen ough than printed material obtained from the corpora- or outside sources. Once at the corporation home page, ok for a link to "investor relationsess informatioect the or "financial information: that prodwct irnmi's earnings and other financ you can access information on theInvestments suill be companlts ult ir aing and buton, you can ornancial infomationExperts predict thet the next yrea Yaho, and other and organic food. To abla for Facebook, the ucts and services, go fo even more specific www.sustainablebusiness.com valiec of the company's stosits keGockivien of the uncial factors that could affect the alernafive fuels, fuel cells, hybrid vehicls can also use websites like Google, Yahoo!, and other about inally friendiy Tke to oblain information about stock investments. developlng investing In the companits thai a a look at Exhibit 1 K i h obain nfo mukGo t the umary page price, the Yaloo ng os the buttons ken from Yahoo! Finance F 12-4, which illustrates a portion of the netheertsocial networking site. In a klition to the current : Finance website provides even more specific about a particular lke Facebook. By click www.greenchipstocks.com nder the hinplny like Facebook. By click cobusinesstink nd insunder te under